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D E P A R T M E N T O F D E F E N C EDepartment of Defence and Military VeteransVote 21REPORT OF THE AUDIT COMMITTEE -DEPARTMENT OF DEFENCE AND MILITARY VETERANSfor the year ended 31 March 2011T h e q u a l i t y o f i n y e a r m a n a g e m e n t a n d q u a r t e r l y r e p o r t s s u b m i t t e d i nt e r m s o f t h e P F M AThe Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by theAccounting Officer of the Department during the year under review.E v a l u a t i o n o f F i n a n c i a l S t a t e m e n t sThe Audit Committee has:reviewed and discussed the audited annual financial statements to be included in the annual report, with the Auditor-Generaland the Accounting Officer;reviewed the Auditor-General's management report and management's response thereto;reviewed changes in accounting policies and practices;reviewed the departments compliance with legal and regulatory provisions, andreviewed significant adjustments resulting from the audit.The Audit Committee concurs and accepts the Auditor-General's conclusions on the annual financial statements, and is of theopinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.I n t e r n a l a u d i tThe Audit Committee is not satisfied that the internal audit function is operating effectively and that it has addressed the riskspertinent to the Department in its audit. The internal audit function needs to be further capacitated to execute its professionalresponsibilities.A u d i t o r -G e n e r a l S o u t h A f r i c aThe Audit Committee has met with the Auditor-General South Africa to ensure that there are no unresolved issues.Chairperson of the Audit CommitteePretoria29 July 2011152ANNUAL REPORT FY 2010/2011